Wynn Resorts expects its first integrated resort in the Middle East to partner with two other properties in different emirates after receiving the UAE’s first casino license.
Wynn announced on Friday (October 4) that it received the UAE’s first commercial gaming license from the General Commercial Gaming Regulatory Authority (GCGRA) late last week. Construction is underway and the Win Al Marjan Island property in Ras Al Khaimah already has several floors. We have a significant head start over our competitors.
Win Al Marjan Island revenue forecast exceeds $1.88 billion
And the operator highlighted the magnitude of the opportunity during an investor presentation in Las Vegas today (October 8).
Wynn estimates the UAE’s gaming market to be worth between $3 billion and $5 billion. For RAK’s assets, it expects total gaming revenue to be in the range of $1 billion to $1.67 billion, with a base estimate of $1.33 billion.
They will pay a mixed tax rate of 10-12% of GGR. In terms of other major IR destinations, this means the UAE is most comparable to Singapore, which imposes a tiered GGR tax of 8% to 12% on VIP players. (rising from 18% to 22% of GGR for the masses).
However, as a mixed rate, it does not confirm the rate of any particular product. However, it suggests a lower tax rate than earlier figures seen by iGB. They proposed a GGR levy of 25% on slots, 18% on tables, and an 8% tax rate on VIP players.
Max Tapainer will lead Win Al Marjan Island’s management team and assumed the role in August this year.
Adjusted real estate EBITDA is expected to be in the range of $390 million to $570 million, with adjusted real estate EBITDA of 36% to 43%. The resort is expected to generate free cash flow between $170 million and $350 million.
The total cost of the project, including land, fees and capital interest, is expected to be $5.1 billion. Wynn’s equity investment will be $1.08 billion (40% stake), and it aims to complete the $2.4 billion loan by the end of the year. Wynn said it was already oversubscribed due to strong demand from domestic and international financial institutions.
Wynn UAE Casino Customer Base
This $1.33 billion base expectation for GGR is reflected in revenue from three core player segments: At the core of this is the “International VVIP” segment, which is made up of ultra-high net worth overseas customers. Wynn expects this group to contribute 37% of GGR.
Approximately 75% of the world’s population is within an 8-hour flight from Win Al Marjan Island. The company has over 100,000 existing gaming and non-gaming customers in its global database. In Wynn Las Vegas’ database, these players spend three times more per day than gaming customers.
International tourism will account for 29% of the total GGR of $1.33 billion. The property is located on a group of man-made islands, 20 minutes from Ras Al Khaimah International Airport and 50 minutes from Dubai International Airport.
Overnight travel to Ras Al Khaimah is expected to increase rapidly in the coming years. In 2023, 4.3 million overnight guests are expected to visit the emirate. According to the RAK Center for Statistics and Research, that number will rise to 9.6 million by 2030.
The final 34% comes from domestic travelers. The UAE is an untapped market for integrated resorts, with a potential player base of 9 million non-Emiratis. And it’s a “magnet” for the wealthy, Wynn said. More than 6,700 billionaires are expected to move to the UAE in 2024 alone.
Wynn projects operating revenue in the range of $1.375 billion to $1.875 billion, with base estimate of $1.625 billion, due to strong non-gaming revenue from amenities such as fine dining and retail stores. I’m doing it.
Taking into account the high end of Wynn’s market size forecast, UAE gaming would be just behind Singapore’s GGR of $6 billion, and not far behind the Las Vegas Strip’s $8.9 billion.
When does Wynn Al Marjan Island open?
The UAE’s first integrated resort is on track to open in 2027, with the property’s tower expected to be completed in the fourth quarter of 2027. Interiors, furniture, fixtures and equipment will be installed over the next year, with a pre-opening planned for the first quarter of 2027. .
Once complete, the property will feature 1,542 guest rooms, including 297 suites, six townhouses, and 22 villas, as well as a 225-square-foot gaming floor. It will also feature 16 restaurants, six bars and lounges, high-end retail and meeting space.
It is likely the first of its kind in the region, but other facilities are already being toured. MGM Resorts CEO Bill Hornbuckle told attendees at the Skift conference in September that the company had applied for a license in Abu Dhabi.
GCGRA has not identified any other license applicants, and Abu Dhabi has not commented publicly on the game’s development.
MGM partnered with Wasl Hospitality and Leisure in 2017 to advise on the development of a luxury resort on Jumeirah Beach. The development will include MGM, Bellagio and Aria brands and 1,500 hotel rooms, but Dubai has also remained quiet about its plans for gaming development.
Wynn said it expects two other competing properties to eventually enter the UAE casino market. Regulations limit each emirate to one casino.